Debt advisers form new grouping in an attempt to raise standards
COMMERCIAL debt advisers have formed an association in a bid to raise standards in the sector.
The Debt Management Association of Ireland aims to impose a code of conduct on debt advisers. The Department of Finance recently conceded that it needed to regulate the sector.
The new association has put in place a code of conduct largely based on one which is approved by the Office of Fair Trading in the UK.
The chairman of a similar organisation in the UK has also agreed to act in an advisory capacity to the new Irish body.
Chairman of the new association, Eugene McDarby, said the main purpose of the Debt Management Association of Ireland was "to set standards of behaviour for debt managers who are working with those in financial difficulties".
The new body also intends to monitor and regulate its members and to promote good practice of business. Last month the Department of Finance did a U-turn by admitting it needed to regulate commercial debt advisers. The change in direction came after months of department officials saying it had no plans to introduce rules for the sector.
New firms are setting up every month offering commercial debt counselling or debt management services, responding to a growing crisis among consumers. Some of these firms are imposing high charges on heavily indebted consumers.
- Charlie Weston Personal Finance Editor
Irish Independent
